Amazon – which employs over 1.5 million people – has announced the second biggest round of job cuts in its history, with 18,000 jobs set t0 be cut globally.
In a memo to staff, chief executive Andy Jassy confirmed that Amazon Fresh and Amazon Go will be especially impacted by the cuts.
The memo stated: “We don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted.
“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” he added.
Amazon cited a downturn in advertising revenue, the ongoing cost-of-living crisis and overly aggressive hiring policies during the pandemic as the root causes for the job cuts.
It follows announcements already made that the company will be cutting back on other projects such as Echo (better known as Alexa) and its delivery robots service.
Amazon is the latest big tech company to announce job cuts, with Meta and Twitter also engaging in mass lay-offs, the former announcing in November that it would cull 13% of its staff and the latter dropping almost half its workforce following Elon Musk’s takeover.
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“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” CEO Andy Jassy said in a note to employees. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
Employees affected by the cuts are expected to be told by January 18.
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